7 Things You Must Know About Lo Doc Home Loans
Lo Doc home loans rose to prominence in the five years preceding the global financial crisis. That is not to say they had anything to do with the crisis, but it does reflect a change in bank lending practices over the years.
You will no doubt be aware of the current lending practices exercise by major banks and how restrictive they can be when it comes to approving home loans. Although Lo
Doc home loans can still be obtained, the conditions under which they are approved have dramatically changed.
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The Special Loan All Successful Investors Use
Most people understand how a principal and interest home loan works. In simple terms this is the most common form of home loans, and means, for example, that if you have a $300,000 home loan over a term of 30 years based on a variable rate of 6.5%, the required monthly repayment will be $1896.20. If economic conditions were to remain stable for the entire 30 years then the monthly repayment would always be $1896.20 and you would pay the loan off in exactly 30 years.
Of course, in the real world this does not happen as interest rates change from year to year making the required monthly repayment change in accordance with the rate variations.
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How To Easily Knock Six Years Off Your Home Loan
There is no real secret about repaying your home loan faster. Simply pay more than your minimum monthly requirement and you will naturally shorten the term of the loan.
Although this sounds like a simple proposition it can take a little planning, but with a proper budget most people are surprised at how much fat they can find in their income which they can then use to repay their home loans quicker than they had originally thought.
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5 Tips to Fast Home Loan Approval
Although every bank has its own individual assessment criteria for a home loan there are some common features which every bank will cover when you make your application. Let’s look at a typical first home borrower and list some of the things that the bank will be looking at.
- Employment History. Every lender will want to make sure that the borrower is currently in employment and has a history of steady employment. Normally a first-time borrower should be able to demonstrate an employment history of at least one year in permanent full-time employment. In some cases the bank will require a longer period of employment depending on the industry and the amount of money applied for.
3 Things You Absolutely Must Do To Get the Best Home Loan
We all want to make sure that we choose the best home loan. But how do we make that decision?
With a home loan there are many elements to think about, not just the interest rate, as you try to decide which is the best home loan that suits your circumstances.
In the first place you need to be certain that the features of a home loan will suit your needs both now and in the immediate future. For example of variable rate will allow you to make as many additional repayments as you wish, whilst a fixed rate will have limits on this.
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Why Honeymoon Rate Home Loans Can End in Divorce
It is always tempting to take the cheapest rate when choosing a home loan. And the temptation gets even greater when a lender or bank offers a cheap introductory first year. All borrowers should be wary of this approach and some simple calculations will show you whether it is worthwhile taking up the offer or not.
As banks jockey for position in a tight credit market, cheaper offers can often come thick and fast with discounts of up to 1% being offered on a standard home loan. Let’s take a look at some examples and determine whether the discounts stack up.
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How To Avoid The fixed Rate Home Loans Traps
Fixed rate home loans rise and fall in popularity as market conditions change. As variable interest rates start to rise most consumers seek the comfort of a fixed rate to immunise themselves against increasing loan repayments.
Whilst fixed rates will always have a place in the home loan market there can be a sting in the tail if you do not do your homework. Let’s look at some of the facts about fixed-rate home loans so you can decide whether they will suit your circumstances or not.
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How To Pay Off Your Debt Faster Using Your Home Loan
Many borrowers neglect to consider the option of using their home loan to consolidate debt. It is quite common that in the years following a home loan approval, borrowers will take out personal loans and credit cards for a variety of reasons. It is also quite common that some years down the track they attempt to consolidate their debt through a personal loan.
Whilst this strategy can be effective in deserving cash flow and making it more manageable by having everything in one loan, it is worthwhile looking at using a home loan to achieve the same purpose.
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Finding the right home for you
If you asked a random individual on the street to list their long term goals, you would find that, nine times out of ten, they will place owning a home on that list.
Everybody wants to own a home, but the reality is that we don’t want to own just any home, rather, we want to own the home that’s just right for our needs and our lifestyle.
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The home loan application process
The first thing that you absolutely need to know about the process of applying for a home loan is this: Do not be intimidated.
For many first time home owners, it can be a little imposing walking into a loan agency and asking for a mortgage. Just bear in mind that these lenders and agencies would not be in business in the first place if they did not want your business. Right now, lenders are competing with one another to offer lower prices and better service to their borrowers, agencies are trying to find the best deal possible in order to secure more customers, and real estate is becoming something of a buyer’s market.
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